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The Council agreed that the European Community should, on the basis of unanimity, enter into an agreement with Switzerland, that will apply the same rates of retention and withholding tax as Belgium, Luxembourg and Austria. The 35% withholding rate will remain also after Switzerland has adopted exchange of information on the OECD standard.
Switzerland will share the revenue of the retention tax and will accept the 75/25 division applied within the Community. However the revenue sharing provisions will only apply to the new retention tax and not the existing withholding tax.
The Council also agreed that the European Community should enter into similar agreements with Liechtenstein, Monaco, Andorra and San Marino.
Council document
Commission press release